The MSE Equity Price Index fell by 0.77% to a three-week low of 3,790.020 points driven by declines in BOV, GO, HSBC, Mapfre Middlesea, Plaza and Farsons. Meanwhile, four other equities closed unchanged as today’s trading activity amounted to €0.36 million.

Bank of Valletta plc was today’s most actively traded equity accounting for almost 75% of today’s trading, as it fell by 2.1% to the €1.85 level over thirteen trades amounting to 145,153 shares.

HSBC Bank Malta plc moved 0.7% lower to the €1.42 level over ten deals amounting to 36,149 shares. Last Tuesday, HSBC Bank Malta plc announced that it had signed an acknowledgement of a put option agreement between its parent company HSBC Continental Europe (‘HBCE’) and CrediaBank S.A., whereby CrediaBank will be paying €0.793 per share (amounting to a total consideration of €200 million) for HBCE’s 70.03% shareholding in HSBC Malta. The potential transaction is subject to an information and consultation process with HBCE’s employee works councils in France as well as approval by the relevant regulators. HSBC’s management and listing on the Malta Stock Exchange are anticipated to be maintained and the potential transaction is expected to be completed by the end of 2026. Following completion of the potential transaction, CrediaBank will become the majority shareholder of HSBC Malta and will launch a mandatory takeover offer for the remaining publicly-held shares. In this respect, minority shareholders will be entitled to sell their shares at a price of €1.44 per share which equates to a price to book multiple of 0.85x based on the net asset value of €1.708 per share as at June 2025. Until the completion of the transaction, HSBC Bank Malta plc intends to distribute dividends in 2026 on a quarterly basis, with a payout ratio of 60% of consolidated net profit, subject to Board and Regulatory approval. As part of the Potential Transaction, CrediaBank would also acquire the rights and liabilities of certain Tier 2 and MREL loans made between HBCE (or another member of the HSBC Group) and the Bank.

GO plc fell by 0.7% to the €2.66 level on a single deal of 800 shares.

Plaza Centres plc slumped by 3.1% to the €0.63 level on one trade of 7,000 shares.

A single deal of 5,009 shares pulled the share price of Mapfre Middlesea plc 0.7% lower to the €1.44 level.

Simonds Farsons Cisk plc declined by 0.8% to the €6.20 level over trivial volumes.

Meanwhile, APS Bank plc traded flat at the €0.51 level as 15,026 shares changed hands.

Hili Properties plc held the €0.24 level on a single deal of 18,500 shares.

Malta International Airport plc closed unchanged at the €5.95 level across three trades totalling 1,561 shares.

International Hotel Investments plc traded flat at the €0.46 level on two deals amounting to 5,283 shares.

The RF MGS Index fell by 0.35% to a two-week low of 908.462 points as the German 10-year bund yield hovered around a two-week high of 2.75%. The movement followed announcements of increased capital expenditure in Germany, with the German Finance Agency confirming that fourth-quarter issuance will exceed earlier forecasts by €15 billion to meet rising infrastructure and defence spending requirements. Similarly, in the UK, net public sector borrowing for August came in at GBP18 billion, above the projected GBP12.8 billion, marking the highest level of August borrowing since 2020.

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.